How to Deduct Gifts to Clients

 

I know quite a few small business owners who send out fun little gifts around the holidays to their clients, but did you know that the entire gift may not be deductible?

Today, I’ve just got a quick little tip when it comes to deducting the gift expenses.

You can only deduct gifts up to $25 per person.

That’s it. Easy peasy, but something not everyone’s aware of. If you’re a tax nerd, like me, and want more info, the IRS has some fun examples for you!

Client Gift Tracking Spreadsheet

Need an easy way to keep track of your client gifts? I’ve got you covered – just click on this link to download the spreadsheet that I use to track client gifts.

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Amy Northard, CPA

The Accountant for Creatives
+ taxes + bookkeeping + consulting
+ Hang out with me over on Instagram!

2 Comments

  • Amy says:

    I never knew this! How do you suggest recording this? Keeping separate record of clients/gifts given (amounts). Right now I just record the amount I spend total on all the gifts I purchase with client information. What if you client is a couple getting married? $50/year?

    • Amy Kerr, CPA says:

      So many things to keep up with, right?! I would keep a spreadsheet of the date, person’s name and amount spent. Since the limit is $25 per person per year, spending $50 per couple per year is allowable. You can spend more, it just isn’t deductible!

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